Christian Perspective

1. Christian Perspective • Ecclesiastes 5:10 Whoever _____ _______ never has ______ enough; whoever _____ ________ is never satisfied with his income. This too is meaningless. • Hebrews 13:5 Keep your lives free from the _____ ___ _______ and be content with what you have… • I Timothy 6:10 For the ____ __ ______ is a root of all kinds of evil.

2. Christian Perspective • I Corinthians 16:2 (Paul speaking) On the first day of each week, each one of you should ____ ______ a sum of money in keeping with his income, _______ ___ ___ , … • Proverbs 13:11 Dishonest money dwindles away, but he who _______ _______ ________ by _______ makes it grow. • Proverbs 13:22 A good man _______ ___ ______________ for his children's children, …

3. 401K, 403B, 457, SEP Retirement Plans • Companysponsoredretirementsavingsplans (supported by multiple types of mutual funds) • 401K offered by ____________________ companies • 403B offered by ____________________ companies • 457 offered by _______________ _____________ • SEP available for ______________ _____________ • In many cases, these retirement savings plans are __________ company sponsored _________ _______

4. 401K, 403B, 457, SEP Retirement Plans (cont’d) • Maximum contribution is ________ % of earned income subject to a maximum amount per year • Tax favored (advantaged) • Additions are made with ________________ dollars • All interest/dividends are _______ _____________ • Most companies will match the first _______ % of each employee’s contribution • All balances must be________ _______ to an IRA when you leave a job (to avoid taxes and _______ tax penalties)

5. Individual Retirement Accounts • Traditional IRA (very similar to a 401K or 403B plan) • All new contributions are made with ______________ dollars • All mutual funds gains are ________ _____________________ • All future withdrawals are _____________ _______________ • You mustbegin withdrawing money at age ____________ • Main use: __________________________________________ • Roth IRA(introduced in 1997) • All new contributions are made with _________ _____ dollars • All mutual fund gains are __________ _______________ • All future withdrawals are __________ _______________ after age _______________ • You do not have to begin withdrawing money at age _________

6. Retirement Savings Strategy • Begin investing ____ % yourfirstdayatwork • You will never ______ what you never ______ • You will not have to make tough __________ ______ • Recommended Investment Strategy • First, invest in a ________ up to the matching pct • Second, invest in a ________ _________ up to the maximum amount allowed per year ($4,000 in 2005). • Third, go back and invest in your _________ up to the maximum amount allowed per year ($14,000 in 2005)

7. Retirement Savings Example • Your first job pays _____________ per year and you get a raise of ______________ per year thereafter • You contribute _________ % each month (Payroll Deduction) • Your employer matches the first _______ % contribution • You contribute _______ % for ________ years (ages 22–67) • Your final retirement “nest egg” will be: 401K + Roth IRA = Total $_________ + $__________ = $___________( 5% - pessimistic) $_________ + $__________ = $___________ ( 6% - conservative) $_________ + $__________ = $___________( 8% - avg last 30 yrs) $_________ + $__________ = $___________(10% - optimistic)

8. Summary • Every person is eligible to invest in their future • You will secure your financial future if you just follow one simple rule…. Invest 10%beginning dayone of your career • Don’t borrow from your 401K or Roth IRA! • College is still the best option if you want: • More initial career options • Higher starting salary • More career advancement opportunities